American Home Shield vs. Choice Home Warranty

Choice Home Warranty and American Home Shield are two of the most well-known and consumer-friendly home warranty companies in the industry today.

American Home Shield has been in the home warranty business since 1971 and serves customers in every U.S. state. Choice Home Warranties is newer to the industry, as it started in 2008 and has since grown to serve most U.S. homeowners except those located in California, Washington, and Oklahoma.

This article breaks down Choice Home Warranty vs. American Home Shield in a head-to-head comparison of coverage, cost, how the claims process works, and important policy features.

Our Take

American Home Shield and Choice Home Warranty both offer comprehensive policies, affordable monthly premiums, generous coverage limits, and high-quality customer service. After carefully reviewing and rating each company according to our rating methodology our experts determined that Choice Home Warranty is the better option.

Choice Home Warranty is rated a 4.9 out of 5 stars and our “best overall” home warranty plan because of its affordable monthly payment options, comprehensive coverage of appliances and systems, 24/7 customer support teams, and 90-day work guarantee.

However, American Home Shield is also an excellent home warranty option. AHS is rated a 4.7 out of 5 stars and our “most customizable” home warranty options because AHS allows its policyholders to choose their service fee of $75, $100, $125, which in turn, allows for more flexibility with homeowners’ budgets.

CHW vs. AHS Coverage Comparison

When comparing the coverage options of Choice Home Warranty vs. AHS, both companies offer comprehensive plans that can accommodate most individuals’ home systems and appliance repair and replacement needs.

Choice Home Warranty Coverage

Also one of the largest home warranty companies in the U.S., Choice Home Warranty offers two different plans to accommodate different home repair and replacement needs.

The two home warranty plan options include:

• Basic plan—This includes heating, electrical and plumbing systems, plumbing stoppage, water heaters, whirlpool bathtub, oven or stove, dishwasher, cooktop, garbage disposal, built-in microwave, garage door opener, ductwork, and ceiling and exhaust fans. 
• Total plan—This covers everything in the basic plan, plus a customer’s air conditioning, refrigerator, washing machine, and clothes dryer. 

Note: Additional coverage is available for a pool/spa, well pump, sump pump, septic system, septic tank pumping, second fridge, and stand-alone freezer.

American Home Shield Coverage

As one of the largest and oldest home warranty companies in the U.S., American Home Shield offers affordable plans that accommodate different customers’ needs.

Learn more about the four home warranty plan options from AHS below:

• Systems plan—This protects home systems such as air conditioning (ductwork included), heating (ductwork included), electrical, plumbing, water heaters, garbage disposal, central vacuums, instant hot and cold water dispensers, smoke detectors, doorbells, and ceiling fans.
• Appliances plan—This includes coverage for common household appliances, such as the washing machine and clothes dryer, dishwasher, range/oven/cooktop, built-in microwave oven, refrigerator, free-standing ice maker, trash compactor, built-in food processor, and garage door opener.
• Combo plan—This plan combines aspects of both the Systems and Appliances plans.
• Build-your-own plan—With this plan, the customer decides which systems and appliances are included in the home warranty contract. This plan has the most flexible pricing because the price reflects the level of coverage. Build-your-own plans from AHS must include at least 10 appliances.

Note: Coverage is available for additional home systems and appliances such as a pool and/or spa, septic pump, and well pump.

Side-by-Side Comparison:

Choice Home Warranty vs. American Home Shield Cost

When comparing the cost of Choice Home Warranty vs. AHS, both companies offer similar services, however, Choice Home Warranty’s service call fees are less expensive.

Choice Home Warranty Cost

Choice Home Warranty has a standard $60 service call fee. This is $60 per claim, regardless of the actual cost to repair or replace your broken system or appliance. It’s payable directly to the technicians. Your monthly premium will cost around $49.99 to $59.99 for a Choice Home Warranty.

Plan	Plan cost per month	Plan cost per year	Service fee
Basic Plan	$45	$560	$85
Total Plan	$53.33	$660	$85

American Home Shield Cost

Service fees will depend on the coverage plan selected. There are three service fee rates: $75, $100, and $125. These fees are determined at the same time the coverage plan is selected during sign-up. You can expect your monthly premium to cost between $36 and $44 for an AHS home warranty.

Plan	Plan cost per month	Plan cost per year	Service fee
ShieldSilver	$34.99-$49.99	$419.88-599.88	$75-$125
ShieldGold	$44.99-$59.99	$539.88-$719.88	$75-$125
ShieldPlatinum	$59.99-$74.99	$719.88-$899.88	$75-$125

How Does each Home Warranty Work?

A home warranty, also known as home appliance insurance or home repair insurance, is different from an insurance policy as it’s a service contract that covers major systems and appliances that need to be repaired and replaced. Choice Home Warranty and American Home Shield offer similar coverage and home warranties from both providers include the option for full coverage with multiple plan tiers to choose from and use clear contract language.

When it comes down to submitting a claim, the process is similar between Choice Home Warranty and AHS. Both companies have convenient customer service access and quick technician turnaround times.

Choice Home Warranty—Customers can log in to their online CHW portal to make a claim. A technician will be sent to the customer’s residence as soon as possible. Customers can also call if more immediate assistance is required.

American Home Shield—Contract holders can request service online 24 hours a day, seven days a week. A technician is then assigned to diagnose the problem and offer a solution. The technician typically reaches the customer within 24 hours from the time the claim is made.

Policy differences

American Home Shield and Choice Home Warranty each have minor limitations and exclusions, however it’s the responsibility of the consumer to thoroughly read the terms and conditions prior to signing.

Choice Home Warranty

Like American Home Shield, it’s important to review your CHW plan’s terms and conditions to ensure that you’re not surprised by any coverage gaps or extra charges. A home warranty with Choice Home Warranty starts 30 days after the contract is signed. This agreement is valid for 365 days. If the technician determines the appliance can’t be repaired, Choice Home Warranty will offer the contract holder a cash payment for the replacement cost.

American Home Shield

American Home Shield’s home warranty terms and conditions are not public—only contract holders can access the agreement. This makes it important to fully understand the terms and conditions before opting in to the policy.

There is a sample contract available on the AHS FAQ page that outlines everything that could be covered under a policy, however, this doesn’t guarantee it will be. It’s also important to know that even though an appliance or system is included, it doesn’t always mean your claim will be accepted.

Our conclusion

While both home warranty companies have their advantages and disadvantages, Choice Home Warranty offers essentially the same services with lower service fees than American Home Shield.

Choice Home Warranty is best for:

• Those who want unlimited call center access
• Those who desire a transparent repair and replacement process
• Those who are wanting to choose from a large contractor network
• Those who want an affordable home warranty

What we don’t like about CHW:

• They don’t offer as much coverage nationwide like AHS does.
• They charge a $50 administrative fee if you cancel services.

American Home Shield is best for:

• Those who would like the option to choose from a variety of plans
• Those who want customizable coverage
• Those who want a trustworthy company with many years in the business

What we don’t like about AHS:

• Though they offer 24/7 customer support, contractors are available only during normal business hours.
• They’re slightly more expensive than CHW.

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